Former president and now Senior Deputy Speaker Gloria Macapagal-Arroyo has backed the controversial bill seeking to create Php 275 billion Maharlika Investment Fund (MIF), saying this has been proposed in 2016.
In a statement released Monday, Arroyo said the idea of creating a sovereign investment fund is “not new” in the Philippines as this was first introduced by former senator Paolo Benigno ‘Bam’ Aquino when he filed such a bill back in 2016.
“Sovereign Wealth Funds are not new. Singapore, for example, has had Temasek Holdings since 1974 and the Government of Singapore Investment Corporation since 1981. There are more than 20 sovereign wealth funds in the Middle East,” she said.
House Bill No. 6398 or Maharlika Investment Fund Act was filed by House Speaker Martin Romualdez last Nov. 28.
Under the bill, Romualdez said the fund will be extracted from government-owned financial institutions (GFIs) to be used for investment activities in order to raise government revenues.
The House Committee on Banks and Financial Intermediaries approved the bill with a few safeguards adopted from the proposal of Albay District Rep. Joey Salceda last Dec. 1.
Among the safeguards adopted is that President Ferdinand ‘Bongbong’ Marcos Jr. will be the chairman of the board.
Arroyo stressed that the success of a sovereign wealth fund lies in "quality management", and she expressed confidence in Marcos' leadership in handling it.
"This is a powerful statement that the highest official of the land will hold himself as ultimately accountable to the Filipino people for the performance of the Fund,” she said.
Alongside, the Senior Deputy speaker claimed that the proposed funds have advantages such as it will "maximize returns and generate funds" to support government programs, and will "establish a mechanism for future contributions."
She also said that the fund will “benefit from centralized, specialized, and accountable management” and “will in essence be housed in what can be thought of as a special purpose vehicle.”
